
The extent of benefits varies by model and variant, with reductions ranging from about ₹1 lakh to ₹1.56 lakh.
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The extent of benefits varies by model and variant, with reductions ranging from about ₹1 lakh to ₹1.56 lakh.
In a major relief for SUV buyers, Mahindra & Mahindra Ltd (M&M) has announced that it will pass on the full benefits of the recently introduced GST 2.0 to customers across its entire internal combustion engine (ICE) SUV portfolio. The move comes just days after the 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, where significant tax rationalisation measures were unveiled.
The announcement means that buyers of Mahindra’s popular models such as the Bolero, Scorpio, Thar, XUV700 and the newly launched XUV3XO will see price reductions of up to ₹1.56 lakh, effective from September 6, 2025. Mahindra is passing on the benefits to its consumers immediately and not waiting for September 22, when the tax measures becoming effective.
Mahindra, India’s leading SUV manufacturer, confirmed that the revised prices will immediately apply at dealerships nationwide. The company said the move reflects its commitment to ensuring that the government’s tax benefits directly reach customers.
Industry experts believe this price correction could boost demand for SUVs ahead of the festive season, especially as many of Mahindra’s models were previously impacted by higher cess brackets.
The extent of benefits varies by model and variant, with reductions ranging from about ₹1 lakh to ₹1.56 lakh. Below is a summary of the key gains for buyers:
Model | Earlier GST + Cess | New GST | Benefit (₹ lakh) |
|---|---|---|---|
| Bolero / Neo | 31% | 18% | 1.27 |
| XUV3XO (Petrol) | 29% | 18% | 1.40 |
| XUV3XO (Diesel) | 31% | 18% | 1.56 |
| Thar 2WD (Diesel) | 31% | 18% | 1.35 |
| Thar 4WD (Diesel) | 48% | 40% | 1.01 |
| Scorpio Classic | 48% | 40% | 1.01 |
| Scorpio-N | 48% | 40% | 1.45 |
| Thar Roxx | 48% | 40% | 1.33 |
| XUV700 | 48% | 40% | 1.43 |
Figures represent benefits on specific variants; actual amounts may vary.
This price reduction may put additional pressure on rivals such as Tata Motors, Hyundai and Maruti Suzuki, which are also expected to align pricing strategies following GST 2.0. With SUVs continuing to dominate passenger vehicle sales in India, Mahindra’s timely move could further consolidate its stronghold in the segment.
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